BMW shares rocket threefold as the carmaker unveils a roadmap to increase its EV sales

As veteran carmakers worldwide compete for the top it for EV prowess, currently held by Tesla, BMW has unveiled a roadmap to enhance its battery-powered fleet. The automaker shares rose three times higher than 2020, hitting a record high of 6%-8%, and it is hopeful of recovering from the Covid-19 pandemic strongly. The German luxury car manufacturer plans to make half of its car sales electric by 2030. Although the group has no plans to ditch gasoline-powered vehicles any time soon, it makes the Mini brand fully electric.

“We have a clear roadmap for making the transformation of our industry and a real competitive advantage for BMW in the coming years,” said Oliver Zipse, BMW’s chief executive officer. The Coronavirus pandemic impacted the car manufacturing industry, and automakers are doing the best to stay afloat and advance their car-making capacity, especially the EV versions. Car battery technology and engine software have been vital in this transformation. Volkswagen recently revealed plans to become a top car battery maker valued at $29 billion.

BMW is trying to keep up with Elon Musk’s EV giant Tesla, General Motors, and Volvo. The latter plans to make its entire car line-up fully electric by 2030. The Chinese-owned carmaker also plans to make half of oats car sales electric by 2025.BMW plans to re-develop old models to EVs, including the luxurious Rolls-Royce.

The “new class” of vehicles will utilize old materials as much as possible to boost revenues from drivers booking digital features. According to the company, this platform will “deliver returns on par with combustion engine models, and BMW isn’t looking to partner with other manufacturers to improve economies of scale,” according to the company.

“We are intent on ensuring that BMW makes the greenest electric car on the market,” said Zipse. “The stock gains are the first step to a more reasonable valuation.” The slow evolution of the company’s 2013 EV, i3, dragged its sales down depriving it of the early-mover advantage. “The expansion of its EV offering should allow the company to catch up with Tesla,” noted Frank Schwope, an analyst at NordLB.

By 2023, the Munich-based carmaker expects to have 20% of its car sales to be EVs or plug-in hybrid vehicles(PHEVs) by 2023. This number will be increased to two million electric cars by 2025 and increased fivefold by 2030 when the company aims to make its global car sales 50% electric.

“BMW has come through last year’s health crisis better than expected and so far, has dodged a global semiconductor shortage. While the supply constraints were at risk, BMW expects its supplies to deliver a sufficient number of chips,” said Nicolas Peter, BMW’s Chief Financial Officer.

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